It is difficult to understand which is the better for GST treatment in the company. I will establish another company to develop houses in Auckland because the existing company exempt from GST because they would have a rental property. So, I am preparing to set up a new company which is not exempt from GST in accordance with the advice of my tax lawyer.

Property prices and equity prices are usually correlated. Property prices are slow in moving because the transaction needs to take some time like a few months. I feel that property prices will be falling about 3 to 6 months after equity prices are falling.

I attended the ANZ seminar yesterday. The real estate investment trusts (REITs) have average returns of 7~8% p.a. It is very attractive compared to the holding of houses in Auckland. Currently, the vacancy rate of them are so low and the gearing of them is around 35%. They are so safe as a investment. Whey Kiwi people did not want to buy them in place of their houses? They are not so interested in investing these REITs or they do not have any idea of REITs.

I am going to attend the seminar for investors arranged by ANZ Bank. Bill English, the Finance Minister in NZ, will come to the seminar. I will say hello to him. I wear the suits almost in 10 years absence. The waist of trousers is a little bid tight because I put on weight…..